"Longs piled up and got hit again"...Bitcoin, Liquidation Fear After Plunging to $72,000

▲ Bitcoin (BTC) Decline / AI Generated Image

As military clashes between the US and Iran escalated again, Bitcoin (BTC) fell below its 100-day simple moving average. In addition, a surge in oil prices and an increase in exchange inflows combined to weigh on the market with risk-off sentiment.

According to crypto-specialized media CoinGape on June 1 (local time), Bitcoin traded down 1.4% at $72,700 that day. Investors engaged in panic selling after the US bombed Iranian military facilities and Iran attacked a US air base, pushing Bitcoin below its 100-day simple moving average of $73,229. During the same period, oil prices rose from $88 to $90.

CoinGape reported that escalating tensions between the US and Iran triggered Bitcoin selling during Monday's Asian trading hours. According to Coinglass, $23 million was liquidated in four hours, and $240 million worth of Bitcoin flowed into exchanges during the weekend's airstrikes, increasing selling pressure. US President Donald Trump stated that Iran "really wants a deal," but the two sides have not yet reached an agreement.

On-chain indicators also pointed to weakening demand. According to Santiment data, Bitcoin's 7-day average active address count dropped to 606,730 last week. The number of active users decreased from 575,610 on May 30 to 465,800 on May 31. CoinGape analyzed that with a lack of buyers and selling pressure, Bitcoin is trapped in a bearish trend.

Technically, the pressure has also increased. Bitcoin broke below the 100-day simple moving average of $73,229, which the bulls had defended since May 28. CoinGape reported that the last time Bitcoin traded below this moving average was in October 2025, when the price fell from $112,000 to $103,500. Recent analysis detected a 6% bear flag, and a failure to defend the support level could lead to a drop to $68,000.

Technical indicators show selling dominance. The Moving Average Convergence Divergence (MACD) is sloping downwards in negative territory, indicating bearish pressure, and Bitcoin needs to recover the $73,229 support level to avoid a further slide to the psychological support of $70,000. Crypto analyst Daan Crypto believes that Bitcoin is trapped between $74,200 and $72,700, and if it breaks out of this range, the next hurdle could be $77,295.

The leveraged market has also emerged as a source of instability. Crypto analyst Joao Wedson pointed out that extreme leverage has accumulated in Bitcoin, making it vulnerable to liquidation if the price moves against investors' positions. He warned that weighted funding rates have remained green for two weeks, accumulating long positions, and given that long positions have piled up even after Bitcoin dropped from $82,000 to $72,000, the next phase could be deleveraging centered on long investors.

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